Unit 8 Personal Auto Insurance

Question 1

The Personal Auto Policy (PAP)

Answer 1

Is a policy containing property and liability coverages. It is designed to insure an individual, not a business.

Question 2

Casualty

Answer 2

Part A- liability coverage 25/50/25
Part B- medical payments coverage $5,000
Part C- uninsured motorists coverage $200, 25/50/25

No deductible

Question 3

Property

Answer 3

Part D- coverage for damage to your auto (physical damage) OTC-$250
Collision- $500
Physical damage coverage

Deductible

Question 4

Definitions section of the PAP

Answer 4

Defines key terms used in the policy. These terms help clarify the intent of various coverages and conditions.

Question 5

Family member

Answer 5

Is any person related to the named insured or spouse who is a resident of the named insureds household. This includes those related by blood, marriage, or adoption, and ward or foster children.

Question 6

Bodily Injury (BI)

Answer 6

Means bodily harm, sickness, or disease including resulting death.

Question 7

Occupying

Answer 7

Means in a vehicle; upon a vehicle; or getting into, onto, out of, or off of a vehicle

Question 8

Property damage

Answer 8

Means destruction of or loss of use of tangible property.

Question 9

Covered auto includes the following:

Answer 9

Vehicles eligible to be listed include private passenger autos, which are four-wheel motor vehicles, pickup trucks & vans that are under 10,000 pounds of gross vehicle weight.

Any trailer owned by the named insured.

Any auto or trailer not owned by the names insured that is being used as a temp substitute for a vehicle shown in the deck page that is out of use because of breakdown, repair, servicing, loss, or destruction.

Question 10

Insureds

Answer 10

Named insured and resident spouse
Resident family members
Any person who borrows a covered auto with the permission of any insured.

Question 11

Supplementary payments

Answer 11

BONDS- up to $250 for the cost of bail bonds
LOSS OF EARNINGS- up to $250 per day because of attendance at hearings or trials at the company’s request.

Question 12

Out of state coverage

Answer 12

Provision modifies the personal auto policy to meet other states financial responsibility requirements and other state laws concerning out of state drivers when the covered auto is being driven in that state.

Question 13

Part B

Answer 13

Covers reasonable expenses for necessary MEDICAL and FUNERAL SERVICES incurred within THREE years of the date of injury regardless of fault.

Question 14

Insureds for medical payments include:

Answer 14

The named insured and any family member(s)
While occupying a motor vehicle designed for use on public roads or a trailer, or
When struck while walking along a roadway by a vehicle designed for use on public roads or a trailer; and
Any other person while occupying the named insured’s covered autos

Question 15

Newly acquired auto

Answer 15

Automatically has same coverage as current covered autos for 14 days
If no coverage, must request coverage within 4 days
If loss occurs within first four days and insureds has complied with notification, $500 deductible will apply.

Question 16

Part D coverage for damage to your auto

Answer 16

Collision; or OTC (other than collision) (comprehensive)

Question 17

Collision

Answer 17

Is defined as the impact of an auto covered by the policy with another object or vehicle, or the upset (overturn) of a vehicle.

Question 18

Other than Collision (OTC)

Answer 18

Coverage pays almost every other type of direct, accidental loss to the vehicle that is not specifically excluded by the policy. These perils are specifically listed in the policy as being OTC. It includes theft or larceny.

Question 19

Part D provides transportation expenses such as:

Answer 19

rental cars, bus fares, train fares, or cab fares. This coverage pays up to $20 per day to a max of $600.